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of Ownership (TCO) analysis today
Reduced per paycheque expenditure – outsourcing delivers
a reduction in spend on a per paycheque basis. Organizations
that outsource payroll spend on average 30% less per
paycheque than those that use in house solutions.
Integrating functions such as payroll and time &
attendance can lead to financial benefits - organizations that
use a single outsource service provider to integrate payroll and
time & attendance spend on average 43% less versus a
manual approach or one that is not integrated.
Outsourcing multiple functions delivers cost efficiencies -
organizations outsourcing payroll, time & attendance, HR data
administration, and health & benefits spend on average 27%
less than those that use an in-house approach.
Employing a single vendor strategy delivers overall TCO
advantages through the avoidance of seams costs - there
is a cost associated with the activities organizations must
undertake to integrate various HR business processes.
Companies that outsource payroll, while employing other
methods to deliver time and attendance and HR data
administration, spend on average 21% more than companies
that outsource all three processes to a single vendor.
In-house technology implementation costs increase TCO –
on average companies that employ an in-house payroll system
spend three times more on initial implementation than those
that outsource.
Amrit Grewal
647.628.3189
Amrit.Grewal@adp.com
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